Coaxial speaker systems utilize a low frequency speaker or cone coupled to a low frequency driver for propagating lower frequencies, and a higher frequency horn extending along the axis of the cone and driven by a separate high frequency driver to propagate higher frequency sounds. While such coaxial speaker systems are relatively compact, they have the disadvantage of displaying a "shadow effect". The shadow effect, caused by the presence of the horn along the center of the low frequency cone, results in a drop in low frequency speaker output near the axis of the horn, over a limited frequency bandwidth. Accordingly, there is considerable deviation from an ideal "flat" frequency-amplitude response of the cone over its useful frequency range. For example, in a coaxial system wherein the low frequency cone propagates sound of a frequency from about 20 Hz to about 2 kHz, and the horn propagates sound in a range from about 1.5 kHz to about 20 kHz, it is found that there is a serious drop in response of the system, as measured directly in front of the system, at a frequency close to about 1 kHz. A coaxial speaker system which avoided or minimized such a "shadow effect", would be of considerable value.